This report of a congressional hearing presents information on children exposed to drugs prenatally and their later educational problems. The document begins with an opening statement and a prepared statement from Representative Charles B. Rangel. Testimony and prepared statements from the following witnesses are included: (1) Evelyn Davis, Assistant Professor of Pediatrics, Department of Pediatrics and Department of Child and Adolescent Psychiatry, Harlem Hospital Center; (2) Charlie Knight, Superintendent, Ravenswood City School District, East Palo Alto, California; (3) Diane Powell, Director, Project DAISY, District of Columbia Public Schools; (4) P. Michael Timpane, President, Teachers College, Columbia University, New York, New York; (5) Robert Chase, Vice President, National Education Association; (6) Elaine M. Johnson, Director, Office for Substance Abuse Prevention, Alcohol, Drug Abuse, and Mental Health Administration, Public Health Service, Department of Health and Human Services; and (7) Beny J. Primm, Associate Administrator for Treatment Improvement, Alcohol, Drug Abuse, and Mental Health Administration, Public Health Service, Department of Health and Human Services. The appendix includes a statement by Representative Jim Ramstad on the problems of drug-exposed children. (ABL)